When: Thursday 8 March 2007 Agenda: 16.00 – Registration and refreshments 16.30 – Welcome and introduction 16.35 – The perspectives 17.35 – Questions and answers 18.00 to 20.00 – Drinks reception Where: Barber-Surgeons’ Hall Monkwell Square London EC2Y 5BD To download a copy of the Presentation click here (PDF - 567 KB)  the Feedback Report click here (PDF - 312 KB)

This is an historic event and has been retained on the website for your information.

With some 70% of large defined benefit schemes closed to new entrants, many are en route, albeit perhaps via a journey of several decades, to "settlement". A minority of sponsors - and maybe we are about to see quite a few more - have accelerated the process by closing their schemes to future accrual.

On the scent of a trade, a raft of new companies has formed, offering to take on DB liabilities - for a price - to help a sponsor transfer pension liabilities off its balance sheet. Many are insurance companies, looking for a traditional "buyout" of pension liabilities. However, as well as increased market capacity, there is product variety and downwards pressure on price not seen before.

On Thursday 8 March 2007 at Barber-Surgeons’ Hall, EC2, Watson Wyatt’s Corporate Consulting Group will hold a seminar on this rapidly evolving “secondary market”. Taking three perspectives (the employer, the market and the provider), our speakers will examine the options and issues when considering transferring pension liabilities in this way.

The seminar is aimed at those with responsibility for managing pensions and pension risk within sponsors of UK defined benefit pension schemes.

The perspectives

The employer
Graham Mitchell
Consulting Actuary, Benefits Practice, Watson Wyatt

In closing a pension scheme to future accrual, employers face a multitude of challenges, including: cost, accounting disclosures, the pain of industrial relations, risk of trustees triggering a wind-up and obstacles in trust deeds and rules to mention some of the more obvious. Taking the employer’s perspective, Graham will examine:

• Implications of "pensions as debt" - current and future
• Options for dealing with pensions - buyout, settlement and other
• Short- and long-term risk reduction strategies

The market
Robert Hall
Consulting Actuary, Insurance & Financial Services Practice, Watson Wyatt

What exactly is the secondary market for pension liabilities, how does it work, and what are the latest developments? In this session, Robert will consider:

• The changes to the market structure for buyouts/bulk purchase annuities
• Alternatives to conventional insurance-based buyouts
• Likely changes to buyout pricing

The provider
David Collinson
Head of Liability Acquisition, Pension Insurance Corporation

What are the issues an insurance company faces in concluding a transaction, and how can an insurance company align itself with sponsors/trustees to overcome any stumbling blocks? In this session, David will look at:

• Recent experiences and case studies
• The tests you should apply before appointing an insurer.

The seminar will be followed by a drinks reception.